UK: A partnership between L&G, Nest and PGGM has acquired a development in the New Jackson neighbourhood of Deansgate, Manchester.
The development, known as F1, will feature 494 apartments, rising to 51-storeys, is being developed by Renaker.
L&G owns the adjacent North and West Towers in Deansgate Square which will create opportunities for wider placemaking and activation of the local area.
Dan Batterton, head of residential, asset management at L&G, said: “This partnership demonstrates how investment from domestic pension schemes as well as international private capital can support the UK Government’s push to boost investment into productive assets, accelerate growth, and deliver pensions savings. We’ve been highly selective when exploring potential sites, and the outstanding characteristics of this development reflect this rigorous and detailed process. With a thriving economy and a rising number of professionals working and aspiring to live in the city centre, the rental market in Manchester is robust.”
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The partnership will forward fund the development of the scheme, which will offer a mix of one-, two-, and three-bedroom apartments, incorporating low-carbon heating systems, all EPC B-rated. The building will include around 10,000 square feet of amenity and resident facilities including a gym, private gardens, and coworking space.
Matthew Forward, senior investment manager, real estate, at Nest, said: “It’s a fantastic opportunity right in the heart of Manchester, providing much needed, high-quality rental properties for a growing city. We look forward to expanding our portfolio with more UK sites, complementing the £3 billion we’ve already directly invested in UK real estate.”
Dirk Bootsma, senior investment manager private real estate at PGGM, said: “The acquisition of F1 in Manchester is the next step of our long-term partnership with L&G. This is a great example of our ambition and commitment to deliver strong social and financial returns for the participants of our client Pension fund Zorg en Welzijn (PFZW). We see the social value of realising new, high-quality rental housing as an additional benefit that fits with the investment philosophy of PFZW.”
Renaker chairman Daren Whitaker added: “We are delighted to have reached an agreement on this new and important addition to New Jackson and to build on an already established and successful relationship with L&G. We look forward to delivering this iconic new development and 494 high quality new homes on behalf of the partnership.”
L&G, Nest and PGGM were advised by CBRE.
